Of course, the story of the worldwide pandemic is far from done, but in Malaysia, more promising chapters are being written as the government’s efforts to restart and expand the economy begin to bear fruit. This comes after a determined effort in digital transformation by all economic sectors, as well as a laser-focused implementation of the national vaccination programme. Despite ongoing challenges, the Malaysian economy has demonstrated admirable resilience, growing by 7.1% in the first half of 2021, according to the Ministry of Finance. This puts the country in a strong position to capitalise on emerging and reemerging possibilities both domestically and globally. One area positioned to profit further is Halal business, which will be aided by Malaysia’s excellent infrastructure and established status as a worldwide Halal centre.
The global Islamic economy continues to expand rapidly since it primarily services the world’s enormous and rising Muslim population. Halal products have become more relevant to both Muslim and non-Muslim consumers as the world grows more concerned with environmental effect, responsible business methods, quality assurance, and wholesomeness. Halal items today provide assurance of quality, hygiene, and ethical business practises. Because the Halal and Green economies share characteristics, they are gradually merging.
Muslims worldwide are expected to spend USD2.02 trillion in 2019 on Halal food, pharmaceuticals, cosmetics, fashion, travel, and media/recreation. Halal spending is expected to reach USD2.4 trillion by 2024, growing at a compound annual growth rate (CAGR) of 3.1% during the next five years. Furthermore, Islamic financial assets were predicted to total USD2.88 trillion globally in 2019. The expansion of the global Islamic economy provides significant prospects for company growth.
From cultivating a thriving Islamic banking and finance industry to offering overall Halal certification standards and laws, the Malaysian government has established global norms for developing a successful Halal economy.
Malaysia leads the world in the Global Islamic Economy Indicator Top 15 position in the State of the Global Islamic Economy report 2020/21 thanks to these initiatives, which include MATRADE’s world-class Halal trade fair. At the same time, partnership between the public and private sectors is critical to promoting the Islamic economy’s continuing expansion.
MATRADE’s dedication to developing the Halal industry is shown in a number of programmes. MATRADE has consistently raised the bar for participants to perform better year after year, as well as emphasised the need of increasing the scale of MIHAS every year.
Furthermore, with MATRADE’s 46 global offices strategically positioned in various countries, local Halal Industry participants can foresee a broader international outreach that can be directed with the Ministry’s assistance.
For several years, CIMB Islamic Bank has been an active partner of the MIHAS exhibition, most recently as the MIHAS 2021 Diamond Sponsor. It is also driving a programme to help Malaysian SMEs compete successfully in Halal markets both domestically and abroad. CIMB Islamic Bank has launched the CIMB Halal Corridor, an expanded trade network connecting halal firms in ASEAN and around the world. Because ASEAN has the world’s biggest Muslim population, CIMB Islamic Bank can help businesses realise the potential of the booming halal market through its ecosystem of partners, which includes certification, supply, logistics, and fulfilment providers across the value chain.
The CIMB HalalBizReady (HBR) concept is part of the CIMB Halal Corridor. The HBR project aims to assist SMEs seeking to expand their operations in global Halal markets by providing access to financing and training to obtain JAKIM certification. Following certification, the HBR ecosystem gives businesses with access to various enablers for accessing the global Halal market through exposure and brand building via CIMB’s own and partner platforms, events, tradeshows, and sponsored activities. SMEs have access to a wide range of solutions, including Halal know-how and certification, consultancy offerings, financing, e-commerce, human resource and cash solutions, and international exposure chances. The HBR is a full package that SMEs may use to build their enterprises in the future.